Why were savings and loans (S&Ls) originally established?

Students were inquired to answer a question at school and to declare what is most important for them to succeed. One which response stood out from the rest was practice. Successful people are certainly not born successful; they become successful by hard work and dedication. This is how you can achieve your goals. right below some question and answer examples that you would possibly implement to enrich your knowledge and gain insight that will assist you to sustain your school studies.

Question:

Why were savings and loans (S&Ls) originally established? A- to help people invest in small businesses
B- to help people save money
C- to help people buy homes
D- to help people invest in the stock market

Answer:

Option (C) is correct. The savings and loans (S&Ls) were originally established to help people buy homes.

Further Explanation:

Saving and loan association:

Saving and loan association is a financial entity that deals with saving deposits and mortgage loans. These entities provide the same services as a commercial bank but majorly emphasis on residential mortgages. The main aim of the saving and loan association is to provide the home facility to all U.S. citizens. Their rules of lending the mortgage loan differ from the rules of other commercial banks.

Justification for the correct and incorrect options:

A.

To help people invest in small businesses: This is an incorrect option because the main aim of saving and loan association is to provide the housing facility.

B.

To help people save money: This is an incorrect option because this task can be carried out by the commercial bank.

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C.

To help people buy homes: This is the correct option because this association was established for providing the housing facility to the U.S. citizens.

D.

To help people invest in the stock market: This is an incorrect option because it does not provide any financial consultancy to the customers.

Thus, option (C) is correct. The savings and loans (S&Ls) were originally established to help people buy homes.

 

Learn More:

1. Learn more about the identical products  

2. Learn more about the filing of tax return

3. Learn more about the demand for the product


Answer Details:

Grade: Middle school

Chapter: the Banking system

Subject: Business studies

Keywords: savings, and loans (S&Ls), originally, established,

help, people, invest, small, businesses, save, money, buy, homes,

invest,  stock market

From the answer and question examples above, hopefully, they can definitely guide the student resolve the question they had been looking for and notice of every single thing declared in the answer above. You can certainly then have a discussion with your classmate and continue the school learning by studying the problem together with each other.

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